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What Is Palantir Ontology? Connecting Business Data, Decisions, and Actions

Article cover with pastel ringed planets and the title What Is Palantir Ontology? Connecting Business Data, Decisions, and Actions Article cover with pastel ringed planets and the title What Is Palantir Ontology? Connecting Business Data, Decisions, and Actions

What you’ll learn

  • How a general ontology differs from the role of Palantir Ontology
  • How business data, calculations, change procedures, permissions, and user interfaces connect
  • How to distinguish among databases, knowledge graphs, RAG, AI execution environments, and Palantir Ontology
  • Four perspectives for evaluating a pilot: business entities, change procedures, permissions, and records

Palantir Ontology connects business data and operations through a shared foundation

Palantir Ontology is a foundation for handling business data and the decisions and operations based on that data through a shared system. It connects entities such as equipment and orders, their relationships, calculations, change procedures, permissions, and operation history in one business model—a structured representation of business entities and rules.

Moving an inspection forward when equipment may fail requires more than checking its condition. The team also needs to know whether parts are available, who may change the schedule, and which conditions permit the change. Afterward, it needs a record of who changed what and when.

Palantir describes the Ontology as an operational layer that supports business decisions and operations.[3] It is designed to help carry a decision into the business workflow, rather than ending with a view of the data.

This article uses the Ontology’s components and an equipment-maintenance example to distinguish it from a knowledge graph, which represents relationships among entities, and RAG, which retrieves information for a generative AI response. It then presents criteria for deciding whether Palantir Ontology fits an organization’s work.

General ontology and Palantir Ontology serve different scopes

In information science, an ontology explicitly describes the concepts in a domain, the relationships among them, and the conditions or constraints that apply. In a business setting, this includes shared definitions such as what counts as equipment and which site a piece of equipment belongs to.

The word originates in philosophy as a theory of existence. AI researchers began using it as a component of knowledge systems in the 1980s, and the definition “an explicit specification of a conceptualization” became influential in the 1990s.[1] In practical terms, an ontology makes a way of identifying and classifying things shareable with people and computers.

OWL, the W3C Web Ontology Language for representing concepts and relationships in logic, allows software to check whether expressed knowledge is consistent and to make implicit knowledge explicit.[2] In that context, the main role of an ontology is to define what exists and how those things relate.

Palantir Ontology connects those definitions to business decisions and operations. The official documentation describes it as an operational layer that connects integrated datasets, virtual tables—which present referenced source data in tabular form—and models to real-world counterparts such as equipment, products, customer orders, and financial transactions.[3]

It is therefore more useful to view Palantir Ontology as an architecture that connects a model of data meaning and relationships to business applications and change processes, rather than as a direct productization of academic ontology.

Ontology components represent entities, relationships, calculations, and operations

Objects, Properties, and Links first represent business entities, their state, and the relationships among them. Functions add calculations and decisions, while Actions add controlled change procedures.

Palantir documentation calls Objects, Properties, and Links Semantic Elements, which represent meaning and relationships. Functions and Actions are among the Kinetic Elements that perform calculations and operations.[3]

ElementRole and exampleMaintenance question
Object (business entity)Represents equipment, orders, customers, and similar entities. An Object Type defines a kind of entity, while an Object is an individual entityAre the identifier and rules for recognizing the same entity clear?
Property (entity attribute)Represents information such as equipment status, inventory quantity, or an order deadlineAre the meaning, unit, and update source consistent?
Link (relationship)Connects an order to a customer or equipment to a siteCan the basis and valid period of the relationship be traced?
Function (calculation or decision logic)Calculates risk, evaluates a condition, or estimates results under changed assumptionsCan the inputs, version, and exception conditions be tested?
Action (change procedure)Creates or updates data, supports approval, or connects to an external systemWho may change what, and under which conditions?
Permission controlControls access to entities and attributes and the execution of operationsCan viewing permission be separated from change permission?
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Objects, Properties, and Links show which equipment exists, where it is, and its current state. Functions and Actions define what can be calculated for that equipment and which changes are permitted.

An Action Type, which defines a change procedure, includes input parameters, Ontology edits, related processing such as notifications, and execution conditions. The same Action logic can be reused from applications for different groups of users.[4]

An equipment-maintenance workflow connects state checks to change records

Palantir Ontology can treat state checks, option comparison, permission checks, changes, and records as one business workflow. This operational scope distinguishes it from a general semantic layer, which standardizes the meaning of data and terminology.

This article organizes the official components into the following four stages for explanation.

  1. Check the current state: Retrieve the information required for a decision from entity attributes and relationships.
  2. Compare options: Use calculations and trial conditions to compare the impact of each candidate.
  3. Change within conditions and permissions: Execute a change procedure only when the required conditions and permissions are satisfied.
  4. Review the change record: Use operation history to determine who changed what and when.

An operational application—a business application that supports decisions and data writeback in addition to displaying information—shows the Ontology’s current state. A Scenario lets a user test the impact of a proposed change under trial conditions, and an Action commits the decision.[5]

Action submission criteria can combine the user, input values, and the state of target Objects. A change that does not satisfy the criteria is rejected.[6]

Consider a maintenance team deciding to bring forward an inspection for equipment with a high risk of stopping.

First, Objects and Links connect equipment, failures, work orders, and parts inventory. A Function calculates the risk and impact of a change, and the coordinator compares candidate dates.

Next, the Action checks whether the equipment is operating, parts are reserved, and the operator has approval authority. If the conditions are satisfied, it updates the work order. When Action Log is enabled, it can retain the decision from a successful Action and link it to the edited Objects.[7]

The design gains value because data meaning, calculations, operations, and permission controls refer to the same business definitions. It can reduce the need for each user-facing application or AI agent—AI that uses tools to pursue a goal—to implement a separate version of the same rules. Whether relationships can be shown as a graph does not by itself capture this benefit.

Databases, knowledge graphs, RAG, and Ontology address different needs

Palantir Ontology is not a single feature that replaces databases, search, and other technologies. Separating what each one is responsible for helps avoid choosing a larger architecture than the requirement needs.

Technology or systemPrimary role and what it handlesWhat it does not handle well by itself
Database and schema (definition of data structure)Determines storage and format by defining tables, fields, data types, and input constraintsShared business vocabulary and decision procedures across systems
Semantic Layer (shared analytical metrics and terms)Standardizes metrics, classifications, and aggregation methods used in analysisExecuting business-data changes and recording operations
Knowledge graphRepresents actual entities, their attributes, and their relationships so that relationships can be traversedManaging who may change state and under which conditions
RAGUses document fragments and vectors—numeric representations of semantic similarity—to retrieve relevant information for an answerAuthoritative business relationships, data updates, and operational permissions
Palantir OntologyConnects entities, relationships, calculations, change procedures, and permissions from state interpretation through governed changeImproving source-data quality or creating agreement among accountable business owners
AI work rules and execution environmentOrganizes instructions, tools, evaluations, approvals, and the execution environment to make AI processing more consistentA shared model that connects enterprise concepts to operational data
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If document search and summarization are the goal, RAG provides a smaller starting architecture. If the goal is to traverse relationships across systems, a knowledge graph combined with existing applications may also fit.

Palantir Ontology adds clearer value when multiple workflows need to reuse the same entities, relationships, calculations, change procedures, and permission controls.

The related AWS Context Ontology Accelerator article covers a foundation for supplying data meaning and relationships to AI agents. It also addresses GraphRAG—retrieval and generation using graph structure—and operating conditions on AWS. This article focuses on the Palantir-specific path from a decision to its change record through Functions, Actions, business applications, permissions, and Action Logs.

Separating view and change permissions clarifies operational responsibility

When multiple workflows and applications share an Ontology, a change to its definitions can have a wider impact. Before connecting data, an organization needs to determine who manages definitions and who authorizes changes.

Permissions for definitions and operational data are separate

In the project-based permission model referenced here, access to Ontology resources—definitions such as Object Types, Links, and Actions—is separate from access to actual Object data.[8]

The model is enabled for new Ontologies. Existing Ontologies may require migration, and the official documentation states that it is not available for Default Ontologies.[8]

For example, permission to view an Object Type definition does not by itself grant access to individual Object values. The user must also have access to the underlying data or satisfy the applicable Object security policy, which controls access to Objects.

Editing a Link or Action also requires edit permission for the related Ontology resources.[8] The design therefore needs to separate the ability to inspect structure, view operational data, and make changes.

Operations require explicit ownership

Based on that separation, this article distinguishes at least the following responsibilities.

RolePrimary responsibility
Concept OwnerApproves Object and Link definitions, the rule for treating records as the same entity, and retirement conditions
Logic OwnerMaintains the basis, version, and test cases for Functions
Action OwnerApproves inputs, edited entities, execution conditions, and related processing such as notifications
Security OwnerVerifies viewing and execution permissions applied to Objects, Properties, and Actions
Application OwnerManages the Ontology scope used by Workshop—Palantir’s business-application builder—or custom applications and the impact of changes
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Ontology changes can affect external applications

The Ontology SDK, or OSDK, is a development toolkit for using an Ontology from an application. It makes a selected subset of the Ontology available from TypeScript or Python. An external application can retrieve Objects, apply Actions, and call Functions.[9]

This broadens where the Ontology can be used, but it also means an Ontology change may affect multiple applications.

When an Object or Action version changes, regression checks—confirming that behavior that worked before still works after the change—need to cover applications and business procedures as well as data pipelines that collect, transform, and connect data.

A pilot needs four perspectives: entities, changes, permissions, and records

A PoC, or limited proof of feasibility and value, is easier to evaluate when it begins with one recurring decision rather than the design of an enterprise-wide ontology.

For a workflow that adjusts equipment inspection dates, the pilot needs to identify the required information, who may make a change, and what must be recorded. The following table is an article-specific framework for scoping that pilot.

PerspectiveQuestions for defining the pilotCondition to defer adoption or revisit a prerequisite
Business entities and relationshipsWhich entities, attributes, and relationships are required? Are identifiers, update sources, relationship evidence, and the data owner clear?One table or document completes the workflow
Calculations and change proceduresWhich calculations, changes, and exception conditions are required? Can inputs, outputs, test cases, execution conditions, and the destination of the change be verified?Read-only analysis meets the requirement
PermissionsWho may view and execute what? Can viewing and execution be tested for representative roles?Source-system permissions cannot be mapped
RecordsHow will the decision and change be traced? Can the operation record, reason, related entities, and recovery procedure be verified?The change owner or record requirements are undefined
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A working screen is not enough to complete the evaluation. A representative decision should demonstrate all of the following:

  • The current state required for the decision can be retrieved.
  • Multiple options and their effects can be compared.
  • A change can be made within permissions and execution conditions.
  • The basis for the decision and the resulting change can be traced afterward.

If one is missing, the organization needs to supply the missing responsibility or evidence before expanding the workflow’s scope.

A smaller architecture may be appropriate when shared business concepts are not used across multiple applications, no data is written back, or relationship traversal is rare. An existing data mart—data organized for a particular workflow or analysis—Semantic Layer, RAG system, or workflow product can keep the maintenance surface smaller.

The reason to evaluate Palantir Ontology is not to make the data model more sophisticated for its own sake. The deciding question is whether the organization needs to operate decisions and execution continuously through the same business model.

Summary: Ontology is a shared foundation for decisions and execution

Palantir Ontology is an operational layer that connects definitions of business entities and relationships to calculations, change procedures, permission controls, business applications, and operation records.

Its distinction from a knowledge graph or RAG becomes clearer when the question moves beyond data representation: does the organization need to use one business model for current-state checks, option comparison, condition-based changes, and operation records?

Search or read-only analysis may justify a smaller architecture. Ontology becomes a clearer candidate when multiple workflows and applications need to share change procedures, permissions, and records.

One recurring decision can make that evaluation concrete. The pilot can test business entities and relationships, calculations and change procedures, permissions, and records while also confirming that people are accountable for definitions and changes.


References

These are the references from the original article. The years follow the original article’s notation.

  1. Tom Gruber, Ontology, Encyclopedia of Database Systems, 2009
  2. W3C, Web Ontology Language (OWL), December 11, 2012
  3. Palantir, Overview — Ontology, 2026
  4. Palantir, Overview — Action types, 2026
  5. Palantir, What is an operational application?, 2026
  6. Palantir, Submission criteria, 2026
  7. Palantir, Action log, 2026
  8. Palantir, Ontology permissions, 2026
  9. Palantir, Overview — App building, 2026

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